Apple is acknowledging that it has been overspending on television shows and movies that many viewers may not be familiar with. The company is reportedly considering a new strategy for its streaming platform, Apple TV+, after investing an astonishing $20 billion in original content, according to Bloomberg.
Apple executive Eddy Cue has been in discussions with the heads of Apple TV+’s studio, Zack Van Amburg and Jamie Erlicht, about reducing production budgets. The studio chiefs have indicated that the streaming service wants to move away from its image as the industry’s largest spender.
The tech giant has made significant investments in various productions, such as the $250 million spent on the miniseries “Masters of Air,” released this year and met with a lukewarm reception. Additionally, Apple has invested over $500 million in films directed by renowned filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these massive expenditures, Apple TV+ holds only a 0.2% share of television viewership in the United States, garnering fewer views in a month than Netflix receives in just one day. The service has also faced challenges in growing its subscriber base.
While Apple has not appeared overly anxious about the performance of its streaming service, as it is not central to its business model, the era of unrestricted spending appears to be coming to an end. This shift is already evident as the company has shown hesitance in renewing shows for third seasons, based on Bloomberg’s information.
Notably, Apple TV+ is the only major streaming service without an advertisement-supported tier, a situation that may soon change following the appointment of Joseph Cady, an advertising executive from NBCUniversal, earlier this year.